EV Salary Sacrifice Calculator
EV salary sacrifice is highly tax-efficient because the EV Benefit in Kind percentage is just 4% for 2026/27. Income Tax + NI savings on the sacrifice usually dwarf the small BIK tax on the EV.
UK electric car salary sacrifice calculator. Defaults to the 4% EV BIK percentage for 2026/27 — adjust for your scheme year.
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What this calculator does
Calculates take-home pay impact, taxable EV benefit and BIK tax, plus employer Class 1A NI on the EV benefit.
Who it is for
UK employees considering an EV under a salary sacrifice scheme.
How to use it
Enter gross salary, monthly sacrifice, EV P11D value, BIK% (defaults 4%), region and age band.
How the calculation works
Taxable EV benefit = P11D × BIK%. BIK tax = benefit × marginal income tax rate. Employer Class 1A NI = benefit × 15%.
Worked example
£50k salary, £500/mo sacrifice (£6,000/yr), £45,000 EV P11D at 4% BIK: taxable benefit £1,800/yr; higher-rate BIK tax ≈ £720/yr; employer Class 1A NI £270/yr.
Assumptions and limitations
- 2026/27 EV BIK = 4%; rises in later years per HMRC schedule
- EW/NI bands only
- Estimates only — not financial advice
Frequently asked questions
Why is EV salary sacrifice popular?
Because the BIK is only 4% for 2026/27, so the tax on the company-car benefit is tiny compared with Income Tax and NI savings.
Will EV BIK rise?
Yes — HMRC has scheduled gradual annual increases. Always check the current rate.
Are home chargers included?
Many schemes include them; check whether they are reportable benefits.
Does EV sacrifice affect Universal Credit?
Your reduced gross salary is used in most means tests. Get advice if you are near a threshold.
Is the BIK percentage editable?
Yes — defaults to 4% for 2026/27 but you can change it.
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Sources and references
GOV.UK EV Benefit in Kind appropriate percentage tables; GOV.UK Salary sacrifice for employers; GOV.UK Class 1A NI rates.
Last updated
Last reviewed: 2026-05-21.